The Sprout: Trade tensions mount as ag ministers meet

Good day and welcome to the Sprout, where we can’t believe we missed National Hot Dog Day yesterday. Today is National Daiquiri Day, so feel free to drown your sorrows.

Here’s today’s agriculture news.

The Lead

We start with some developing trade news: Conservative Leader Andrew Scheer has written to Prime Minister Justin Trudeau requesting he recall the House of Commons back so MPs can debate and ratify the Comprehensive and Progressive Trans Pacific Partnership trade deal (CPTPP). The legislation was tabled by former trade minister François-Philippe Champagne shortly before the Commons rose for the summer in June.

With NAFTA in jeopardy, and a series of failures on other major trade files, Canada needs to diversify its export markets now. There is no time to wait. That’s why today I sent this letter to Justin Trudeau. He should recall Parliament and ratify CPTPP: https://t.co/IJ9PVPQBMRpic.twitter.com/ia8pgpGntE

Scheer’s request comes as Singapore announced yesterday it had become the third country to ratify the trade pact, following Mexico and Japan. Six of the 11 member countries need to ratify the agreement in order for it to come into force. Canada’s Chief Agriculture Negotiator Frederic Seppey has said Canada wants to be among the first six countries to do so.

“The CPTPP is an important and high quality agreement that will complement Singapore’s existing network of bilateral free trade agreements,” Singapore’s Minister of Trade Chan Chun Singwrote in a Facebook post. “It will eliminate or reduce tariff and non-tariff barriers to create new opportunities and benefits for businesses, workers and consumers across the Asia-Pacific region.”

He added: “I look forward to the prompt ratification of the agreement by other CPTPP partners so that businesses can reap the benefits of the agreement soon.”

The 11 member countries of the CPTPP are reportedly meeting in Japan this week to discuss the trade pact. The Taiwan News has more.

Meanwhile, Canada has a new international trade diversification minister following Wednesday’s shuffle. Natural Resources Minister Jim Carr is now responsible for Canada’s CPTPP and other trade interests outside of the Canada-U.S. iPolitics has more.

Canada’s agriculture ministers kicked off their annual ministerial gathering in Vancouver last night with a roundtable discussion with the Canadian Federation of Agriculture before heading to a reception celebrating the best of British Columbia’s cuisine. The ministers will meet today and tomorrow. iPolitics’ Kelsey Johnson is in Vancouver where there’s been a few developments:

Saskatchewan’s Agriculture Minister Lyle Stewart is not at this week’s meeting. Stewart was forced to cancel his trip to Vancouver over the weekend because of personal appointments, his office said. Saskatchewan’s Deputy Minister Rick Burton is at the meeting.

Speaking of the CPTPP, the minister’s trade update is currently set for Friday morning, where the Asia-Pacific trade pact is expected to earn mention. Canadian farm groups have been pressuring the Trudeau government to ratify the trade pact as quickly as possible given the ongoing uncertainty south of the border.

The escalating trade war with the United States is expected to overshadow this week’s ministerial as farm country continues to worry about its competitiveness following American Agriculture Secretary Sonny Perdue’s promise of support for American farmers. Perdue is expected to release his program in September.

Agriculture Minister Lawrence MacAulay, left, and U.S. Secretary of Agriculture Sonny Perdue go lobster fishing in the North Atlantic off the coast of Cardigan, P.E.I. on Friday, June 15, 2018. THE CANADIAN PRESS/Andrew Vaughan

On Wednesday, Federal Agriculture Minister Lawrence MacAulay would not say whether he was in favour of a short term ‘ad hoc’ program for the industry. Those conversations, he said, would take place over the next few days. Officials are also expected to talk about Italy’s continued concerns about Canadian durum wheat and the ongoing dispute between India and Canada over pulses. A trade update from Seppey is set for Friday. iPolitics’ Kelsey Johnson has that story.

Today, ministers are expected to receive an update from the external advisory panel on Business Risk Management. The panel was tasked with completing a one-year review of the suite of programs last year. At least one agriculture group, the AgCoalition, has asked for the review to be extended. Four members of the external panel are in Vancouver. MacAulay wouldn’t say Wednesday whether the extension would be granted.

And, should Canada’s marijuana industry be eligible for federal agriculture funding? That’s one of the questions Canada’s agriculture ministers are expected to tackle when they meet in Vancouver this week for their annual federal-provincial-territorial meeting, which comes three months before the consumption and possession of cannabis is set to become legal in this country.

Moving to non-FPT related news: Ontario Premier Doug Ford says his province will intervene in Saskatchewan’s court case against Ottawa’s carbon pricing policy. The leaders of the provinces are meeting in New Brunswick where their host, New Brunswick Premier and Chair of the Council of the Federation Brian Gallant was joined by Canada’s U.S. ambassador David MacNaughton to call for a First Ministers Meeting on trade. The CBC‘s Janyce McGregor was there. The carbon tax, Greyhound’s decision to exit Western Canada and interprovincial trade are other topics on the agenda of the premiers’ meeting. The Canadian Press has more.

Internationally

U.S. President Donald Trump has threatened Europe with ‘tremendous retribution’ as the threat of massive auto tariffs continues to loom about an escalating trade war. As Business Insider reports, the U.S. president made the threat during a cabinet meeting Wednesday where he insisted that European Commission President Jean-Claude Juncker needed to make a major trade offer to lower barriers on automobiles during his trip to the U.S. next week.